Australian shares closed higher on Monday, with energy stocks among the top gainers, after retail sales rebounded in July, even as the annual rate slowed further.
The S&P/ASX 200 index ended 0.6% higher at 7,159.8, after posting its second consecutive weekly drop on Friday.
Nominal retail sales in July rose 0.5%, beating expectations, a result that would not likely upset the outlook for interest rates as high borrowing costs work to slow consumer spending.
“Today’s data won’t shift the near-term dial for the RBA (Reserve Bank of Australia), but certainly leaves unresolved the extent that softness in consumption growth through the first half will persist into the second half of the year,” analysts at National Australia Bank said in a note.
Markets think there is a 96% chance that the RBA will leave interest rates unchanged next month. Energy stocks advanced 0.7%, with Ampol leading gains, climbing 3% to hit a one-year high.
Miners rose marginally as copper prices climbed, supported by Beijing’s latest measures to boost its stock market.
Sector majors Rio Tinto and BHP jumped 0.7% and 1.2%, respectively.
Rival Fortescue fell 5%, hitting a two-month low, after the world’s fourth-largest iron ore miner said its metals division head and co-CEO Fiona Hick was leaving after less than six months in the role, while posting its lowest annual profit in three years.
In New Zealand, the benchmark S&P/NZX 50 index closed 0.1% higher at 11,479.01 points.
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